Best Practices in Risk Management for Securitized Products
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Guidelines on Credit Risk Management
Best Practices in Risk Management for Securitized Products
These guidelines were prepared by the Oesterreichische Nationalbank (OeNB) in cooperation with the Financial Market Authority (FMA) Published by: Oesterreichische Nationalbank (OeNB) Otto Wagner Platz 3, 1090 Vienna, Austria Austrian Financial Market Authority (FMA) Praterstrasse 23, 1020 Vienna, Austria
Produced by: Oesterreichische Nationalbank
Editor in chief: Gu‹nther Thonabauer, Secretariat of the Governing Board and Public Relations (OeNB) Barbara No‹sslinger, Staff Department for Executive Board Affairs and Public Relations (FMA)
Editorial processing: Luise Breinlinger, Yi-Der Kuo, Alexander Tscherteu, Florian Weidenholzer (all OeNB) Thomas Hudetz, Werner Lanzrath (all FMA)
Design: Peter Buchegger, Secretariat of the Governing Board and Public Relations (OeNB)
Typesetting, printing, and production: OeNB Printing Office
Published and produced at: Otto Wagner Platz 3, 1090 Vienna, Austria
Inquiries: Oesterreichische Nationalbank Secretariat of the Governing Board and Public Relations Otto Wagner Platz 3, 1090 Vienna, Austria Postal address: PO Box 61, 1011 Vienna, Austria Phone: (+43-1) 40 420-6666 Fax: (+43-1) 404 20-6696
Orders: Oesterreichische Nationalbank Documentation Management and Communication Systems Otto Wagner Platz 3, 1090 Vienna, Austria Postal address: PO Box 61, 1011 Vienna, Austria Phone: (+43-1) 404 20-2345 Fax: (+43-1) 404 20-2398
Internet: http://www.oenb.at http://www.fma.gv.at
Paper: Salzer Demeter, 100% woodpulp paper, bleached without chlorine, acid-free, without optical whiteners
DVR 0031577
Vienna, 2004 Preface
The ongoing development of contemporary risk management methods and the increased use of innovative financial products such as securitization and credit derivatives have brought about substantial changes in the business environment faced by credit institutions today. Especially in the field of lending, these changes and innovations are now forcing banks to adapt their in-house software systems and the relevant business processes to meet these new requirements.
The Guidelines on Credit Risk Management are intended to assist practitioners in redesigning a bank